At a cross road

[Angela Aybar]

Hello Everyone,

Angela here looking for some advise.

I'm own 2 multifamily homes in Newark, NJ. We have been trying to buy other properties for some time but, because of credit and little income it has not been possible. We spoke with a realtor in the area who says he can sell our homes and leave us with a profit of $500,000.

My question to you all is, should I sell/cash out now, that the market is hot and used that money to buy some where cheaper all cash. This way I can used the BRRR method to increase my portfolio? Or should I keep these properties as rental? If so, what is the best method in my situation to acquire more units?

PS: My cash flow every month for all 4 units is about $2825

Note: taxes in NJ are high and my interest rate is now %4.78.

Any advise, feel free to ask questions if you need more clarification.

[Vanessa Ivonne Hernandez]

I live in Jersey own property here but I'm building my portfolio in the Midwest. Personally it's more affordable for me, better landlord/tenant laws, and I can use a DSCR loan to get more property.

Like you I have issues with income and credit so my DTI was not where it needed to be. I couldn't just wait around so I had my boss do DSCR loan for me because I can afford the 20-25% down payment. It was a quicker closing time because my personal income wasn't being analyzed, and we instead used the cashflow from the property to close the deal.